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Introducing Relaiters products

The Relaiters product range includes:

These products will be available on desktop and mobile with multiple user levels

Please register your interest so that we can update you as products become available

Our retail ready Relaiters range of products​

Are available on the cloud with monthly subscription choices

Using carefully selected metrics information is made available simply and efficiently

  • Through a collection of well-designed forms that identify and target the key drivers of your business
  • That follow logical pathways into the business and build relationships along the way
  • Breaking down silos by collecting in one place all your most important data insights for any Relaiters product you use
  • Giving you an integrated/connected view of your business

That will improve the ongoing oversight of your business

  • Relaiters will help organize and structure your retail thinking
  • To align with strategic business drivers that are parameter driven
  • To improve returns and value
  • With logical workflows that are familiar to you

Relaiters products are valuable

They simplify & institutionalise analysis

  • They follow a standard template & are simple to use
  • They will streamline & integrate processes
  • There are no black boxes
  • They are based on real industry experience with built in sanity checks
  • Quick snap shot of retailer health & strategic drivers

With a high degree of automation essentially data wrapping your business

  • Delivering the big picture based on your assumptions
  • Which you can selectively target/modify numbers that look strange
  • They perform their functions a lot quicker
  • This will release time & therefore generate more immediate paybacks
  • The task changes from doing to reviewing
  • The outputs can be designed/used as inputs for other ERP systems

Which by design has predictive meaning when analysed

  • By identifying
    • How much money you will make or save; or
    • What compelling problem needs solving
  • So that when you act upon the metrics or calls to action you are contributing to improved EBITDA performance

Relaiters Strategic Business Planning Philosophy​

A planning process has 3 steps:

You create or respond; then

You change or recover; and with what you have learnt

You re-imagine

These steps are particularly relevant today during and after the COVID19 pandemic

Relaiters allows you to:

Determine a benchmark - before the event

Change the sales drivers to determine the impact upon sales & cost related productivity metrics as a default

Then change those metrics to reflect the reality of the new business model

Our process:​

You input your raw data into our prescribed format

There are in built error checks to ensure the accuracy & completeness of the data you enter

  • Simple things such as agreed hash totals for completeness, that balance sheets balance, the P&L reconciles with detailed category management data

Our productivity driven metrics are automated using your default assumptions

You then review the reports & change any areas to suit your strategic direction

  • Headcount, for example, will automatically reduce on lower sales levels
  • You then change the staffing levels to reflect the reality of lower sales productivity levels as you rebuild

Relaiters SBP is a planning AI enabled tool​

Delivering a logical & layered approach in a retail context

  • With our flexible/informed approach towards integrated metric change management
  • Every time any metric is changed, it will either increase or decrease the value of your company
  • We help embed parameters that will become institutional when they become the financial targets

Enabling the business to work optimally in order to serve the customer better

  • Staff need to be informed to take the right actions
  • Dealing with the retail basics
  • Offering the right product at the right time, in the right place, at the right price.

But retail businesses need help to achieve this

  • Our experiences suggest that a planning model is still required
  • But built simply with a retail mindset
  • That addresses the key retail elements of access, price, assortment, service & experience
  • In an integrated manner
  • From which many perspectives of the retail business are delivered
  • Enabling the retail CxO to quickly assess the financial & strategic health of their business

The Retail Context

We focus upon the key elements that influence the entire retail business, examples include

Access
Store expansion
Store network and logistical efficiency
Price
Positioning
Competitiveness
Assortment
Balance across networks
Depth and Breadth
Private Label
Service
Staff Knowledge
Stock on Shelves
Experience
Ambience
In store excitement
Store layout

Delivering a logical & layered approach in a retail context and influence how we process data

Access Thinking
A whole new mind-set is needed in the way you seek to attract & engage that customer
Price Opportunity
Data can take many forms and not all data is equal in importance
Assortment Tools
Which means we will build data recipes of our own
Using Relaiters CQ
Service
Decide how we make insights available
Experience
We must consider what we have and how we can optimize its use.
If we don’t have it, how do we get it?

Introducing Relaiters Forecasting

In virtually every decision managers make, executives today consider some kind of forecast

The issue is the source & visualising them all to make an informed choice

Relaiters helps provide context for performance-based choices that are easily understood based on historical data trends, previous monthly growths & run rates to achieve a target

Relaiters New Store

This module collects the assumptions and benchmarks for the new store using the same treatments as the SBP module

Introducing Relaiters CQ​

For data relationships using clustering & quadrants

These products will try identify the optimal performance between variables

  • The elements include:
    • Raw data e.g. simple sales ranking by SKU
    • Transformed data e.g. Top 10 SKUs sales within categories or gross margin %

Each quadrant is a cluster with defined performance parameters

  • Transformed data relationships e.g. pricing/GM% per SKU movements or EBITDA % sales by store or sales per m2
  • Pairing the relationships e.g. optimal products for pricing movements vs GM$ or % movements

Driving value from any four quadrants or combinations

Relaiters CQ will help identify and prioritize opportunities

Relaiters CQ for clustering & quadrants

Each quadrant is a cluster with defined performance parameters

  • The Relaiters matrix includes
Examples of
CQ1
Variables
Sales per selling m2
per trading month
Price per SKU movement
Promotional offtake % sales
Inventory per selling m2
Examples of
CQ2
Variables
Sales per selling m2
per trading month
SG&A % sales
Sales per FTE
per trading month
Wages % sales
Examples of
CQ3
Variables
Sales growth
SG&A growth
EBITDA growth
Gross margin % sales
Average basket
Examples of
CQ4
Variables
ROI growth
Sales asset cover
EBITDA cover CAPEX
Economic value added
Cash flows

Relaiters SBP Metrics

Using metrics that change EBITDA performance


Sales

Sales

Normal

Consignment

Non Trading

Drivers

Customers per trading month

Average spend per trading month

Category mix % sales

Promotions % sales

Sanity check

Sales per m2 per trading month

Sales per FTE per trading month

Sales growth %

Cost of Sales

Income

Income

Based on sales

Based on purchases

Based on services

Adhoc store activity

Shrink or Waste

Drivers

Income % sales

Income % purchases

Value per store or % sales

Sanity check

Contribution to net margin

Mix of Income; sales or purchase driven

Income growth %

Sales growth %

Income growth % variance vs sales growth %

SG & A

EBITDA

Using Metrics & Benchmarks that Affect Working & Fixed Capital

Managing your trading position

Working capital

Inventory

Trade payables

Trade receivables

Cash flow

Drivers

Inventory per m2

Inventory per store

Purchases

Back income % sales

Purchases cover cost of goods (x)

Sanity check

Inventory days cover

Trade payables days cover

Trade receivables days cover

Purchases cover

Cash flow % sales

Managing your capital productivity

Relaiters SBP Strategic Context

Addressing the key retail elements of


Access

  • Store types are captured comp store, renovated stores, new store, omnichannel
  • Clustered by opening date, with related performance

Comp Store, Renovated Stores, New Store, Omnichannel

Sales

Store negative sales growth

Average trading area m2

Average sales per m2 per trading month

Below breakeven productivity per m2

Store wages

Store OPEX

Store cash negative

Price

  • Front margin
  • POS or scan margin
  • Cost of sales e.g payment fees (credit cards) or royalties
  • Promotional cost mix
  • Shrink or waste mix known (in store) vs unknown (stocktake)

Assortment

  • Category sales, sales mix %, contribution to margin
  • Which products to invest in promotionally
  • Income driven mix
  • Income mix % balance; sales or purchase driven
  • The portfolio approach applies equally to stores and formats, as it does for products

Service

Increased visibility of

  • FTE Headcounts & productivity
  • SG&A per trading month

Experience

  • Providing clear definition of KPI's
  • Visibility of strategic direction of productivity metrics & valuation impacts

A minimum number of data points are captured to give the best insights

Success in business is about creating choices & executing the correct ones...

Barry Shalley


Barry Shalley
(WhatsApp) +65 9625 6754
barry@retailmethods.com

Our Founder & CEO

Retail Methods creates products based on Barry’s extensive retail knowledge under licence

For over 30 years, Barry has applied a unique, practical start-up, financial, strategic and commercial approach to modern retail businesses working with clients through his boutique consultancy Strategica and/or companies he has co-founded

In c-suite roles delivering competitiveness and productivity both operationally
and digitally in New Zealand, Australia, China, Indonesia and South East Asia

Barry has identified many substantial opportunities to improve EBITDA for retailers between 1% to 3% sales using his knowledge through Retail Methods’ products